PIVOT POINTS

PIVOT POINTS

Pivot points is used  by floor trades . This is a good trading strategy used by all traders  .This points are useful  for traders to have some idea  about the market where the market was heading   during  the course of the day with  a  few  simple arithmetic calculations. It is calculated by using previous days high ,low,close,a series of points  are derived. This points are pivot point  level,critical  support and resistance levels.Pivot points are popular because they are predictive  as opposed to lagging.Large number of professional traders  follow  Pivot Points  because we will often find that  the market  react at this levels. This points gives  an opportunity to trade. The formula  I use is below

P = ( H+ L + C )/3;
S1 = (2*p)-H;
R1 = (2*p)-L;
S2 = p -(R1 – S1);
S3 = L - 2*(H-P)
R2 = P + (R1-S1)
R3 = H + 2*(P-L)
PIVOT mid points
MIDR1 = (P+R1)/2;
MIDR2 = (R1+R2)/2;
MIDR3 = (R2+R3)/2;
MIDS1 = (P+S1)/2;
MIDS2 = (S1+S2)/2;
MIDS3 = (S2+S3)/2;

PIVOT MIDPOINTS ARE ALSO GIVEN FOR QUICK ENTRY AND QUICK EXIT OF TRADE.

IF THE MARKETS OPENS ABOVE THE PIVOT  POINT THEN THE BIAS FOR THE DAY IS LONG TRADES.IF THE MARKET OPENS BELOW THE  PIVOT POINT THEN THE BIAS FOR THE DAY IS SHORT TRADES.IN GENERAL THE THREE IMPORTANTS PIVOT POINTS  ARE  R1,S1 AND THE  ACTUAL  PIVOT POINT

 IN MY BLOC I AM GOING TO  GIVE DAILY PIVOT  LEVELS FOR  NIFTY 50 STOCKS,JUNIOR  NIFTY STOCKS,NIFTY MIDCAP50 STOCKS,BANK NIFTY STOCKS,CNX PHARMA STOCKS,CNX IT STOCKS,CNX INFRA STOCKS,NSE FUTURES STOCKS CURRENT MONTH,NSE CURRENCY FUTURES,MCX  COMMODITY FUTURES  CURRENT MONTH AND NEXT MONTH.